Brazil Considers Cutting Ethanol Import Tax in Nod to Trump, Report Says
Brazil's government is considering cutting import taxes on ethanol in a bid to appease U.S. President Donald Trump and as a way to help tame inflation, newspaper O Globo reported on Friday, citing sources. The move comes as Brazil faces criticism from the U.S. over its tariffs on sugar, which is typically negotiated alongside ethanol imports. By reducing ethanol import taxes, Brazil hopes to persuade the U.S. government to make an exception to the recently announced 25% tariff on aluminum and steel imports.
- This potential concession could also be seen as a strategic move by Brazil to gain leverage in trade negotiations with the United States, which has been a significant market for Brazilian exports.
- Will this attempt to appease Trump's administration have unintended consequences for Brazil's domestic energy policies and the long-term sustainability of its ethanol industry?